Colorado Springs has one of the largest concentrations of active duty, reserve, and retired military personnel and federal civilian employees in the country. That population deserves estate planning guidance that accounts for military life, not just a generic will signed before a deployment and never looked at again. This post covers what makes military and federal employee estate planning distinct, which accounts and benefits you need to address specifically, and why reviewing your plan after a PCS move to Colorado is worth doing sooner rather than later. If you want a broader look at how estate planning needs to shift across a military career, our earlier guide on your military life in stages covers that ground well.

Why Colorado Springs Military Families Need a Specialized Estate Plan

A standard estate plan covers who gets your assets, who makes decisions if you cannot, and how to avoid or simplify probate. For most families, that covers it.

For military families and federal employees, the list goes further. You have government-provided life insurance that operates entirely outside your estate. You have retirement accounts governed by federal law, not Colorado law. You may face deployment or extended leave that creates real incapacity risks on a timeline that does not allow for delays. And if you move frequently, estate planning documents from another state may not reflect Colorado’s requirements or your current family situation.

According to the U.S. Department of Defense, Colorado Springs is home to more than 40,000 active duty service members and their families, plus tens of thousands more in federal civilian roles supporting military operations. Most have SGLI coverage, TSP accounts, or FEGLI enrollment, all of which require coordination with the rest of a complete estate plan.

What Makes Estate Planning Different for Military and Federal Employees?

The biggest difference is that military and federal benefits sit outside the typical estate planning structure. Your will does not control where your SGLI proceeds go. Your trust does not automatically capture your TSP. These accounts pay to whoever you named as beneficiary, and if that designation is outdated or missing, the results can be legally messy and financially painful for the people you were trying to protect.

SGLI (Servicemembers’ Group Life Insurance)

Servicemembers’ Group Life Insurance provides up to $500,000 in coverage for eligible service members. It pays directly to the named beneficiary, outside of probate, outside of your will, and outside of any trust you may have created (unless you designate your trust as a beneficiary). That is a feature, not a flaw, but it requires that your SGLI beneficiary designation be current and intentional. If you married, divorced, had children, or lost a named beneficiary since you last updated your SGLI form, VA Form SGLV 8286 is where you fix that.

One situation families consistently miss: naming a minor child directly as the SGLI beneficiary. If a minor is named, the government cannot release the funds to the child. The proceeds go through a conservatorship process that requires court involvement in Colorado and can delay access to funds by months. The cleaner solution for parents of minor children is to set up and name a revocable living trust as the SGLI beneficiary, with the trust structured to manage and distribute the funds for the child’s benefit over time.

TSP (Thrift Savings Plan)

The TSP is a retirement savings account available to federal employees and uniformed service members. Like SGLI, it pays based on beneficiary designation, not your will or trust (unless you designate your trust as a beneficiary). The TSP has its own beneficiary hierarchy: if you have a surviving spouse, the TSP pays to them regardless of what your beneficiary designation says, unless your spouse waives that right in writing using Form TSP-17. Log into tsp.gov and review your designation. If you named an ex-spouse, a spouse who is now deceased, a parent who has since passed away, or a minor child, you need to update your beneficiary designation right away.

FEGLI (Federal Employees’ Group Life Insurance)

Federal civilian employees covered by the Federal Employees’ Group Life Insurance program face the same beneficiary designation issue. FEGLI pays to the named beneficiary regardless of your will. The default order of precedence when no beneficiary is named runs spouse first, then children, then parents.. If that order does not match what you want, Standard Form 2823 is the form to file.

The Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act provides certain financial and legal protections for active duty members, including protections on interest rates, civil court proceedings, and lease terminations. It is not directly an estate planning tool, but it affects what can happen to your financial obligations if you are deployed and become incapacitated. A durable financial power of attorney naming a trusted agent is what lets someone manage your accounts, pay your bills, and handle financial decisions on your behalf while you are overseas or unable to act. Without one, even your spouse may face restrictions on accounts held solely in your name.

Planning for Deployment and Incapacity

Deployment creates a specific kind of estate planning urgency. You need someone legally authorized to handle financial and medical decisions in your absence, and you need that authorization in place before you leave, not afterward.

Two documents every service member should have before deployment:

Durable Financial Power of Attorney: Names someone to manage your finances while you are gone, including paying bills, filing taxes, managing bank and investment accounts, and handling real estate. This is separate from any military power of attorney you may have signed on base, which is typically narrow in scope and limited in time. Our complete guide to powers of attorney in Colorado walks through exactly what this document covers and how to make sure yours is valid.

Medical Power of Attorney (Healthcare Directive): Names someone to make medical decisions if you are injured and cannot speak for yourself. Your living will states what interventions you want or do not want in an end-of-life scenario. Your medical power of attorney names who communicates those wishes and makes real-time decisions.

A valid Colorado power of attorney for property must be signed and notarized. Powers of attorney executed under the Uniform Military and Overseas Citizens Absentee Voting Act are recognized in Colorado courts, but if you have an existing POA drafted in another state, confirming it meets Colorado’s requirements under C.R.S. § 15-14-701 et seq. before you rely on it is worth the hour it takes.

Should Military Families Use a Living Trust?

This depends on what you own, who are your beneficiaries, and where you own property. For military families who move frequently, a revocable living trust has real advantages that a will alone cannot match.

A trust holds your assets during your lifetime and avoids the need for probate for that property if you pass. If you own real estate in Colorado and have property or accounts in another state, your estate could face probate proceedings in multiple states without a trust in place. A properly funded living trust eliminates that complication entirely. It also addresses incapacity more cleanly than a will does. If you become incapacitated overseas or stateside, your successor trustee can step in and manage trust assets without court involvement, which is faster and far less expensive than a conservatorship proceeding.

One practical consideration for military families: transferring your home into the trust is an important step that many people overlook after creating one, especially after one or more moves. If you buy a Colorado home and do not re-title it in the trust’s name, that property still goes through probate. Our post on how to transfer a home into a living trust in Colorado covers the process in detail.

The trade-off is that a trust requires ongoing attention as you move and your assets change. Our office can help you work through whether a trust fits your specific situation.

PCS Moves and Your Colorado Estate Plan

If you recently PCS’d to Colorado from another state, your existing documents may be valid but may not reflect Colorado law or your current circumstances. A will executed in another state is generally valid in Colorado if it was valid where it was made, but your named executor, guardian, or agent may have changed since you last updated it. PCS moves often come with changes in family size, assets, and the people you trust most. Our overview of essential estate planning documents every Colorado resident needs is a useful checklist for anyone new to the state.

Powers of attorney carry more risk. Some states use specific statutory language that Colorado courts expect to see for real property transactions, and a POA that works fine in one state may create complications here. Living wills and healthcare directives are generally portable, but Colorado’s specific form includes language that Colorado providers recognize and are comfortable honoring, which removes ambiguity at the moment when ambiguity is most costly.

What This Means for You

Military service creates a level of unpredictability that makes estate planning more necessary, not less. The good news is that most of what needs to be done is not complicated: update your beneficiary designations on SGLI, TSP, and FEGLI, make sure you have a current power of attorney before your next deployment, and confirm your Colorado documents are in order after a PCS move.

If you are active duty, reserve, a veteran, or a federal civilian employee, we thank you for your your service, and we honor you with a 10% discount on all services.   If you have not reviewed your estate plan in the past two years, The Law Office of Kevin R. Hancock is here to help. We work with military families across Colorado Springs and the Front Range and understand how your benefits and your estate plan need to work together. Call or fill out an online form to schedule a consultation.

Frequently Asked Questions

Do military service members need a will if they have SGLI coverage?

Yes. SGLI pays to your named beneficiary outside of probate, but a will covers everything else: personal property, vehicles, accounts without beneficiary designations, and most importantly, who you want to raise your minor children. Naming a guardian for your children can only be done in a will, and SGLI does not address that at all.

What happens to TSP funds if a service member dies without a beneficiary designation?

The TSP pays in a set order: surviving spouse first, then children in equal shares, then parents in equal shares, then the estate. If your estate receives the funds, they go through probate. Naming a beneficiary directly on your TSP account bypasses that process entirely.

Can federal civilian employees in Colorado Springs use a living trust to avoid probate?

Yes. A properly funded revocable living trust avoids probate on the assets held within it, regardless of whether you are a civilian or military. FEGLI and TSP accounts pass outside the trust based on beneficiary designation, so the trust covers real estate, bank accounts, investment accounts, and personal property.

What is a military power of attorney and how is it different from a standard Colorado POA?

A military power of attorney is executed under 10 U.S.C. § 1044b using military notary services on base. It is legally valid and recognized in Colorado, but it is often limited to specific actions or time periods. A durable financial power of attorney drafted under Colorado law offers broader authority and does not expire on a set date.

Does the Servicemembers Civil Relief Act affect estate planning?

The SCRA provides some protection against civil court proceedings while you are on active duty, but it does not replace estate planning documents. It does not prevent probate from opening after death, does not name an agent to manage your finances during deployment, and does not protect your dependents if you are incapacitated. A complete estate plan addresses all of those gaps.

Should military families update their estate plan after a PCS move to Colorado?

Yes, particularly if you are buying real estate, if your family situation has changed, or if your existing documents are more than two years old. Colorado law does not require you to redo valid out-of-state documents, but a review confirms they still reflect your wishes and will work the way you intend. Our post on how often you should update your estate plan covers the key triggers in detail.

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Quick Overview – Estate Planning Costs

• Will estate plan: Lower cost, simpler structure
• Revocable Trust estate plan: Higher cost, more comprehensive
• More complex issues/estates: Higher cost due to customization and additional need for planning (i.e. tax planning).

Actual costs can vary widely, especially between attorneys, but a Will estate plan may range from a few hundred dollars to a couple thousand dollars.  Whereas, a Revocable Trust estate plan typically starts at a couple of thousand dollars and can range to upwards of ten thousand dollars depending on the attorney and the amount of work needed.  

Cost Differences: Will v. Trust

Will Estate Plan – Includes Will, Financial and Medical POAs, Living Will

• Pros:
  • Simpler to create and maintain
  • Very little to no pre-planning and/or asset maneuvering
  • Lower overall cost
• Cons:
  • May avoid probate of certain assets (e.g. beneficiary deed for real estate, accounts with beneficiary designations), but may also require probate after death for assets with no beneficiary designations
  • No asset protection for beneficiaries
  • Sets up forum and structure to cause litigation and fighting between heirs/beneficiaries

Revocable Trust Estate Plan – Includes Trust, Will, Financial and Medical POAs, Living Will, Transfer of assets documents (funding documents)

• Pros:
  • More comprehensive planning
  • Designed to avoid probate
  • Designed for management of assets for beneficiaries – 
  • Includes a variety of contingency planning – think Swiss army knife as opposed to a butter knife (Will estate plan)
  • Includes asset protection for beneficiaries
  • No forum for litigation and overall less likelihood for beneficiaries to fight
  • Immediate and smooth transition of control of assets when you become incapacitated or pass
• Cons
  • Periodic maintenance required – specifically, assets acquired over time must be transferred to the trust to avoid probate
  • Higher overall cost due to complexity of a trust
  • Requires planning and asset maneuvering to avoid probate

Many people choose a trust as part of a strategy for avoiding probate in Colorado, which can save time and reduce complications later.

Is Estate Planning Worth the Cost?

In almost every situation, yes.  While the upfront cost of estate planning can be significant ranging from $1,000 – $6,500 at The Law Office of Kevin R. Hancock, the cost of probate can be significantly higher ranging from $7500 to $25,000 plus.  Beyond the dollars, the REAL VALUE of estate planning is PEACE OF MIND knowing your family and assets are taken care of if you become incapacitated or pass away.  

Quick Tips – Attorneys’ Fees in Estate Planning 

• Flat Fee v. Hourly Fee
  • Some attorneys still charge an hourly fee for estate planning, but you should only pay an hourly fee if your estate planning requires significant and an undeterminable number of hours to draft and work through.  
  • Otherwise, most attorneys do and should charge a determinable flat fee for estate planning based on the type of estate plan you need.
• Avoid an Annual Maintenance Fee
  • Some attorneys, especially when you do a Trust estate plan, charge and require you to sign up for their “annual maintenance” plan for a significant fee, usually $750-$1,000 per year.  This is so that you can do any updates and/or maintenance to your trust annually.  The problem is most people do not need to do annual maintenance, and so they end up paying thousands of dollars, sometimes tens of thousands of dollars, for work that is never done or needed.  
  • At The Law Office of Kevin R. Hancock, we charge a flat fee on a per document basis for updates and/or maintenance.  We also meet with you and discuss the fee ahead of time so you know exactly what the update/maintenance will cost you before any work is done.

Frequently Asked Questions

Which Estate plan is more affordable in Colorado Springs?

A Will estate plan generally costs less than a Trust estate plan making it generally more affordable.  But, the lower cost up front means a higher likelihood of significantly more costs later.  

Why does a trust cost more than a will?

A trust involves more planning, drafting, asset maneuvering and coordination.

Can estate planning save money in the long run?

Yes. Avoiding probate and reducing complications will save time and expenses later.

When should I hire an estate planning attorney?

It is best to start before major life changes or before your estate becomes more complex.

What This Means for You

Estate planning costs can vary, but the most important factor is having a plan that fits your specific situation.

A simple plan may be enough for some individuals, while others benefit from a more comprehensive approach.

The right plan is not just about cost—it is about making your wishes clear, protecting your family and giving you peace of mind. 

If you’re in Colorado Springs or the surrounding area, The Law Office of Kevin R. Hancock can help you create a plan tailored to your needs.

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In Colorado, the right choice depends largely on your goals in the estate planning process, such as avoiding probate, the value and composition of your assets, and your family situation. While many people think they need one or the other, a complete estate plan often includes both.

Trust vs Will: Quick Comparison

Trusts

• Take effect during your lifetime
• Avoid probate for funded assets
• Provide planning for incapacity
• Remain private

Wills

• Take effect after death
• Require probate
• Name guardians for minor children
• Become public record

What Is a Will?

A will is a legal document that outlines how your assets should be distributed after your death. It also allows you to name guardians for minor children.

A will only takes effect after death and must go through probate. The court oversees the process to ensure assets are distributed correctly.

A properly prepared will ensures your wishes are clearly documented, but it does not avoid probate or provide protection during your lifetime.

What Is a Living Trust?

A living trust is a legal arrangement that holds your assets during your lifetime and directs how they are managed and distributed after your death.

You can manage your assets as the trustee, and a successor trustee can step in if you become incapacitated, or after you’ve passed away.

Living trusts are commonly used in trust-based estate planning to provide more control and avoid probate.

Does a Trust Avoid Probate in Colorado?

Yes. Assets that are properly transferred into a trust typically avoid probate.

This is one of the main reasons people choose trust-based estate planning. Probate can involve delays, court oversight, and added complexity and costs for your family through the Colorado probate process. 

Using a trust can simplify the process and help with avoiding probate in Colorado.

When a Will May Be Enough

A will may be enough if:

• You have a very simple estate
• You are not concerned about probate
• You mainly need to name guardians for children
• You want a straightforward option

When a Trust May Be the Better Option

A trust may be the better choice if:

• You want to avoid probate
• You own a home or multiple assets
• You want privacy
• You want a plan for incapacity
• You want more control over distribution

Trusts are often used as part of a broader estate planning strategy.

Do You Need Both?

In many cases, yes.

A trust can handle major assets, while a will acts as a backup for anything not included in the trust. A will is also necessary for naming guardians. The rule of thumb is all trusts have wills involved, not all wills have trusts involved.

Other Documents to Consider

A trust or will alone is not a complete plan.

Most people should also have powers of attorney in place so someone can make financial or medical decisions if needed.

Frequently Asked Questions

Is a trust better than a will in Colorado?

It depends. A trust avoids probate and provides more control, while a will is simpler and may be enough for smaller estates. The answer is largely dependent on your goals in the estate planning process.

Do I need a trust to avoid probate?

Generally, yes. Wills do not avoid probate. A trust is one of the main ways to do so, however avoiding probate is largely dependent on the composition of assets, the structure of your estate plan, and the proper use of estate planning documents.

Can I have both a trust and a will?

Yes. In fact, all trust-based estate plans also include wills as a comprehensive approach.

Is a trust more expensive than a will?

Yes, upfront. But it can save time and costs later by avoiding probate. Structures of estate plans are generally a balance to allocate time, costs, and headaches. Trust-based estate plans are generally more costly to establish, but frequently are the most cost-effective in the long term.

What happens if I only have a will?

Your estate will go through probate, and the court will oversee distribution.

What This Means for You

Trusts and wills serve different roles in your estate plan.

The right choice depends on your goals, your assets, and how you want your estate handled.

If you’re unsure what’s right for you, getting guidance from an estate planning attorney can help you make a clear, confident decision.

If you’re in Colorado Springs or the surrounding area, The Law Office of Kevin R. Hancock can help you put a plan in place that protects you and your family.

Start Your Estate Plan Today

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In Colorado, living trusts are commonly used to simplify estate administration, avoid court involvement, and create a clear plan for what happens if you become incapacitated or pass away.

For many individuals and families, a living trust is a key part of a complete estate plan—but it is not always necessary. The right choice depends on your goals, assets, and family situation.

What Is a Living Trust?

A living trust (also called a revocable living trust) is a legal structure that holds your assets while you are alive and directs how those assets are handled after your death.

As the Trustor (or creator of your trust) and Trustee (or administrator of your trust) you typically do the following:

• Create the trust
• Transfer assets into it
• Amend your trust as necessary

This means you maintain full control.

After your death (or if you become incapacitated), a successor trustee steps in and follows the instructions you’ve outlined—without needing court approval.

How a Living Trust Works in Colorado

For a living trust to work properly, it must be funded. This means transferring ownership of assets into the trust.

Common examples include:

• Real estate
• Tangible personal property
• Bank accounts
• Investment accounts

Once assets are inside the trust, they are generally not subject to the Colorado probate process. This is why many people use a trust as part of a strategy for avoiding probate in Colorado.

However, any assets not placed into the trust may still go through probate.

What Are the Benefits of a Living Trust?

Avoids Probate

Assets in a living trust typically pass directly to beneficiaries without court involvement, helping families avoid probate in Colorado.

Maintains Privacy

Unlike a will, a trust does not become public record.

Plans for Incapacity

If you are unable to manage your affairs, your successor trustee can step in immediately.

Speeds Up Distribution

Assets can often be distributed faster than through probate.

Provides Control

You can decide exactly how and when assets are distributed.

These benefits are why living trusts are a central part of many trust-based estate plans.

When Do You Need a Living Trust?

A living trust may make sense if:

• You want to avoid probate
• You own a home or multiple assets
• You want privacy for your estate
• You want a plan for incapacity
• You have children or a more complex family situation

If your situation is simpler, a will-based plan may still be appropriate.

The best approach often comes from building a plan that fits your unique needs through estate planning in Colorado rather than choosing one document in isolation.

Living Trust vs. Will: What’s the Difference?

A living trust and a will serve different purposes.

A will:

• Takes effect after death
• Goes through probate
• Names guardians for minor children

A living trust:

• Takes effect during your lifetime
• Avoids probate for funded assets
• Provides management during incapacity

Many people benefit from having both. A trust handles major assets, while a pour-over will serve as a backup for any assets not included in the trust.

Do You Still Need Other Estate Planning Documents?

Yes. A living trust does not replace other essential documents.

A complete estate plan often includes the following additional documents:

• A pour-over will
• Financial and medical decision-making documents
• Advance directives

For example, powers of attorney allow someone to act on your behalf if you are unable to make decisions.

These documents work together to fully protect you and your family.

Frequently Asked Questions

Do living trusts avoid probate in Colorado?

Yes, assets properly placed in a living trust typically avoid probate. Assets outside the trust may still go through probate.

Can I change a living trust?

Yes. Most living trusts are revocable, meaning you can update or cancel them during your lifetime.

Do I need a will if I have a trust?

Yes. A pour-over will ensures any assets not placed in the trust are still properly handled.

Is a living trust only for large estates?

No. Living trusts are appropriate for those who own a home, even with a mortgage, or who want to control when their loved ones will inherit assets. 

What happens if I don’t fund my trust?

If assets are not transferred into the trust, they may not receive its benefits and could still go through probate.

The Bottom Line

A living trust is a powerful estate planning tool that can help you avoid probate, protect your privacy, and create a clear plan for your future.

However, it is not a one-size-fits-all solution. The right approach depends on your assets, your family, and your long-term goals.

If you’re considering a living trust—or aren’t sure whether you need one—the best next step is to get clear, personalized guidance. Working with an experienced estate planning attorney can help you avoid mistakes and put a plan in place that actually works when your family needs it.

If you’re in Colorado Springs or the surrounding area, The Law Office of Kevin R. Hancock can help you create a plan tailored to your situation and give you confidence that everything is handled properly.

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If you’ve recently lost a loved one—or are planning ahead for your own estate—you might be wondering: What exactly is probate, and how does it work in Colorado?  

Probate is the court process of transferring probate assets, validating a will, validating and paying debts of a decedent. While it can sound intimidating, probate does not always need to be difficult or intimidating, and when estate planning is done properly, probate can be avoided almost entirely.  

This guide walks you through everything you need to know about the probate process in Colorado, including when it applies, how long it takes, and how to avoid it altogether.

What Is Probate?

Probate is the court process of administering a deceased person’s estate, including but not limited to, identifying assets, identifying and verifying debts and distributing remaining assets according to will (testate) —or state law if there is no will (intestate).

In Colorado, probate typically falls into three categories:

1. Small Estate Procedure

This is for estates under $86,000 with no real estate involved.

2. Informal Probate

The most common process, whether with a will (testate) or without a will (intestate) and no disputes.

3. Formal Probate

This is for estates where there is a will contest or other disputes and Court supervision is required or requested.

How Long Does Probate Take in Colorado?

Probate timelines depend on the complexity of the estate and type of probate:

• Small estates: A few weeks
• Informal probate: 6 months to 2 years is typical
• Formal probate: 2+ years, especially with litigation

Delays often occur due to creditor claims, real estate sales, or disagreements among heirs.

How Much Does Probate Cost?

Costs vary, but you can expect:

• Filing fees and costs – $500+
• Attorney fees – $7,500+
• Personal Representative fees – depends on whether the personal representative chooses to take compensation, but usually $35 to $125 per hour.
• Administration fees and costs – funeral costs, final medical expenses, etc. 

Typically, all of these fees are either paid directly from the probate estate or reimbursed to anyone incurring such fees and/or costs.

How Can You Avoid Probate in Colorado?

Avoiding probate can be fairly easy to accomplish in Colorado with proper estate planning.   Here are a few tools that can help:

• Upon death, assets pass directly to your beneficiaries, avoiding probate.
• Joint Tenancy with Right of Survivorship (JTWROS) – Real estate or accounts held this way transfer automatically to the surviving owner.  This is the most common setup for assets jointly owned between spouses. 
• Payable-on-Death (POD) or Transfer-on-Death (TOD) designations – Name beneficiaries on bank accounts, retirement accounts, or real estate titles.
• Beneficiary Deeds – Colorado allows real estate to pass outside probate via a properly recorded beneficiary deed.

Need Help Navigating Probate?

At The Law Office of Kevin R. Hancock, we guide families through every step of the probate process with compassion and clarity. Whether you need assistance administering a loved one’s estate—or want to protect your own—we’re here to help.

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At The Law Office of Kevin R. Hancock, we consider POAs foundational documents for every adult in Colorado—whether you’re 18 or 80, married or single, wealthy or just starting out.  Here’s what you need to know about how Powers of Attorney work in Colorado and why having them in place is essential.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the “principal”) to appoint another person (the “agent”) to make decisions on your behalf. In Colorado, POAs fall into two primary categories:

1. Medical Power of Attorney (MPOA)
2. Financial Power of Attorney (FPOA)

Each one serves a different purpose—and both play a critical role in protecting you and your family.

1. Medical Power of Attorney (MPOA)

A Medical Power of Attorney allows your appointed agent, presumably someone you trust, to make healthcare decisions if you become unable to communicate or make those decisions yourself.  Your medical agent may be responsible for decisions about:

• Treatment options
• Surgeries or procedures
• End-of-life preferences
• Medication or pain management
• Choosing healthcare facilities

Unlike many states, Colorado does not automatically assign your spouse or family member as your agent. Without a valid MPOA, family members may disagree, healthcare providers may have limited guidance, and your family may need to pursue a costly guardianship through the Courts.

Learn more about Powers of Attorney.

2. Financial Power of Attorney

A Financial POA allows your agent to manage your property, financial and legal matters, if you are incapacitated.  This may include:

• Paying bills
• Managing bank accounts
• Filing taxes
• Handling real estate transactions
• Overseeing investments
• Managing insurance or retirement accounts

Without a Financial POA, your family may need to pursue a costly and time-consuming court-appointed conservatorship just to access funds or handle bills on your behalf.

Why Every Adult in Colorado Needs a POA

Most people assume POAs are only for the elderly but emergencies do not discriminate by age. Every adult over the age of 18 should have powers of attorney in place, especially if:

• You live alone
• You travel often
• You have children or dependents
• You own property
• You want someone you trust to handle your medical or financial decisions

Life can change in an instant, and your legal preparation should not wait.

When Does a Colorado POA Go Into Effect and How Long Does It Last?

Power of Attorney documents may be:

• Immediate (meaning they are effective as soon as you sign)
• Springing (meaning they become effective only upon incapacity)
• Durable (meaning they remain in effect even when you are incapacitated)

For medical POAs, these are only ever set up to be springing and durable, which means your agent only has authority to make decisions for you upon you being determined to be incapacitated and their authority to act continues when you are incapacitated.  

For financial POAs, they are typically set up to be immediate and durable between spouses, and thereafter, springing and durable for agents other than a spouse.  

Once a POA is in effect because of incapacity, the POA will last until you regain capacity or until you pass.  All POAs cease to be effective when the principal passes. 

Can You Change or Revoke a POA?

Yes. As long as you have capacity, you may:

• Update
• Replace
• Limit
• Or revoke entirely your existing Power of Attorney.

Regular updates are recommended if:

• Your relationships change
• Your agent moves away
• You marry or divorce
• Your wishes evolve

→ If you’re updating, visit our Estate Planning Services page to get started.

Common Misconceptions About Powers of Attorney

“My spouse can automatically make decisions for me.”

Not in Colorado—POAs are still needed.

“I only need one document.”

You need both a medical and financial POA.

“I’m too young for this.”

Once you turn 18, no one—including parents—can legally speak for you without a POA.

“My will covers that.”

A will directs who gets your probate property when you pass.  It has no effect during your lifetime.  POAs required to protect you while you are alive.

FAQ

What are the two most common types of power of attorney in Colorado?

Medical Power of Attorney and Financial Power of Attorney.

Does a POA need to be notarized in Colorado?

Yes.

Who should I choose as my POA agent?

Someone trustworthy, responsible, and capable of making decisions in your best interest.

Can I name different agents for medical and financial decisions?

Yes, many people do.

Protect Yourself and Your Family with Proper POA Documents

A Power of Attorney is one of the simplest—and most important—steps you can take to protect your future. At The Law Office of Kevin R. Hancock, we walk you through each decision to make sure your documents reflect your wishes clearly and legally.

If you need help creating or updating your POA documents, call us or fill out an online form today. We’re here to help you prepare with confidence.

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At The Law Office of Kevin R. Hancock, we encourage all of our clients to review their estate plan at least once a year—or sooner if major life changes occur. Below are the most common questions you should ask yourself to know if it’s time to update your estate plan.

1. Does the distribution of your estate still reflect your wishes and goals?

Estate plans are very rarely static – ideally, they grow, develop, and change throughout your life. The structure of your distribution may change – maybe children show more or less maturity than could have been predicted. Maybe you’ve decided to be more charitably inclined over the years. Maybe your intent has changed and you wish to provide directly for grandchildren. 

Regardless of the types of changes, it is important to review documents to ensure your wishes are still reflected as we don’t expect your wishes to stay the same forever.

2. Do you still have the best people involved?

Your personal representative, trustee, guardian, or powers of attorney must be trustworthy, capable, and available. Over time, relationships change or people move away.

If your chosen agents no longer feel like the right fit, updating your documents ensures your wishes will be carried out by the people you trust most.

→ Read about The TAP Method: Choosing the Right Agents for Your Estate Plan

Further, your children may have grown or your guardian preferences may have changed. Maybe your young children are now adults. Maybe the guardian you originally named no longer feels like the right choice. Revisiting these decisions is an essential part of keeping your plan aligned with your family’s needs.

→ Read our guide: Planning for Minor Children

3. Is the current composition of my estate properly reflected by my estate plan?

Have you experienced a major life change?

Life changes quickly. Significant events that may invoke a change include:

• Marriage or divorce
• Birth or adoption of a child
• Death of a loved one
• A new home purchase or sale
• Starting or selling a business

These events may impact who inherits your estate, who serves as guardian for your children, and who should make financial or medical decisions if you can’t.

→ Consider updating after reading our Estate Planning Services.

Has Your Financial Situation Changed? 

If your wealth has increased, decreased, or shifted significantly, your estate plan should reflect it. This includes:

• New investments
• Property or business changes
• Gifting strategies
• Increased tax exposure

A revised estate plan ensures your assets are protected and distributed according to your goals, but more importantly, especially with trust-based estate plans, we want to ensure that you receive the most value from your estate plan knowing the trust is properly structured and funded.

Changing composition of assets also can affect the structure of an estate plan. It is common that when will-based estate plans made sense originally, a shift in the composition of assets starts to make trust-based estate plans the better tool to use in the situation.

Other considerations:

When reviewing your estate plan, there are additional considerations that are important to keep in mind, whether it is simply a structural matter to get the most value from your estate plan, or a consideration that invokes needing to update the documents.

Has your health status changed? 

If your medical needs or conditions have shifted, it’s important to update your Living Will, Medical Power of Attorney, and HIPAA releases. This ensures your wishes are clear, and the person advocating for your care is someone you trust completely.

Are your beneficiary designations up-to-date?

Even the best-drafted will or trust cannot override beneficiary forms on retirement accounts, life insurance policies, bank accounts with TOD/POD designations, and investment accounts. Have you changed financial institutions since you last looked at your estate plan? If these designations are outdated, your assets may go to unintended recipients—regardless of what your estate planning documents say.

Is your estate plan more than 3–5 years old?

Even if nothing major has changed in your life, federal and Colorado laws evolve, and your estate plan should remain current with best practices.

A regular review ensures your documents remain legally sound and fully aligned with your goals.

Why Updating Your Estate Plan Matters

Keeping your estate plan updated avoids:

• Family disputes
• Probate complications
• Outdated or invalid instructions
• Unintended beneficiaries
• Delays in administering your estate

A fresh review each year keeps everything on track and gives you peace of mind—something we believe everyone deserves.

Need Help Updating Your Estate Plan?

At The Law Office of Kevin R. Hancock, we help Colorado Springs families keep their wills, trusts, and incapacity documents current, clear, and legally strong.If you have questions or believe it may be time to update your documents, call us or fill out an online form today. We’re here to make the process simple, supportive, and stress-free.

The post 3 Signs You Should Update Your Estate Plan appeared first on The Law Office of Kevin Hancock.

1. Revocable Living Trust (Yes, optional, but often necessary and/or very strategic)

A revocable living trust is the Swiss army knife of estate planning. With its many and varied

tools, you can avoid probate, protect assets for your beneficiaries (beyond any kind of protection

you can buy, quite literally), plan for multiple and varied contingencies (alcohol/substance abuse, special needs, etc.) as well as manage and distribute your assets privately. Revocable living trusts are almost always recommended if you:

• Have minor (under 21) children (to avoid Conservatorship)
• Own real estate in multiple States (to avoid probate in all of those States)
• Own a business
• Have a blended family
• Want to protect your assets for your beneficiaries

2. Last Will and Testament

A key component of any estate plan in Colorado is a Last Will and Testament (a “Will”). The primary purpose of any Will is to direct who gets your probate property when you pass. If you

set up just a Will estate plan, then you are either setting up your assets to transfer outside of

probate (via beneficiary deed for real estate and beneficiary designations on accounts), or you are wanting your property and estate to go through probate, for whatever reason. If you set up a

revocable living trust estate plan, then a Will is also included for the purpose of capturing and

transferring any probate assets that got missed (i.e. not transferred to the trust during your

lifetime) to your trust.

3. Durable Financial Power of Attorney

Whether you do a Will estate plan or a revocable living trust estate plan (both for the purpose of planning for the event of death), your estate plan should always include powers of attorney to plan for the event of incapacity. The first document for that purpose is a durable financial power of attorney. Durable means the document is created now and endures even into/past your incapacity. The purpose of the financial power of attorney is to name your agents, whoever you choose (though, usually the same people, same order as your personal representative or Trustee), to manage your property and finances in the even you are incapacitated to they can:

• Pay your bills
• Access your bank accounts
• Manage real estate or investments
• File taxes on your behalf

Without a durable financial power of attorney, your loved ones may need to go to court to obtain

a conservatorship over you if you are incapacitated, which is costly, time-consuming as well as

requiring court oversight and annual reporting to the court.

4. Medical Power of Attorney

The second document you need for purposes of planning for incapacity is a medical power or

attorney. In a medical power of attorney in Colorado, you appoint your agent, again whoever

you trust and choose, to make healthcare decisions for you if you are unable to do so yourself

due to injury and/or illness.

Without a medical power of attorney, your loved ones may need to go to court to obtain a

guardianship over you if you are incapacitated, which is also costly, time-consuming as well as

requiring court oversight and annual reporting to the court.

5. Living Will (a/k/a Advance Directive)

The third document you need for purposes of planning for incapacity is a Living Will (also

known as an Advance Directive). The purpose of the Living Will is to direct the removal of life

sustaining procedures (as defined by Colorado law) in the event you are incapacitated and

determined by two doctors to be in a “persistent vegetative state” or “terminal condition” (also as

defined by Colorado law). The Living Will allows you to direct:

• How long you wish to remain on life sustaining procedures, if at all
• When to remove artificial nutrition and hydration after other life sustaining procedures are removed
• Whether you want resuscitative measures during that time (e.g. CPR, mechanical respiration, antibiotics, maximum pain relief)
• Whether you want your wishes to prevail or give your medical powers of attorney authority to override
• Whether you wish to be an organ and/or tissue donor

A Living Will is a gift to your family because it takes the burden off your family to make those

very difficult decisions often in a crisis.

6. HIPAA Authorization Form

While HIPAA Waivers are generally provided for and/or are included in a revocable living trust,

as well as medical and financial powers of attorney, you should always include a stand alone

HIPAA waiver, just in case, as part of a complete estate plan in Colorado. The purpose of the

HIPAA waiver is to give your Trustee and/or agents under your powers of attorney legal access to your medical records so they can communicate with your doctors about determining

incapacity and make informed medical decisions for you.

Bottom Line

Estate planning in Colorado is not just about planning for death and incapacity – it is about living

with peace of mind. When you have these documents in place, you no longer need to worry

about what will happen if something happens to you. That is peace of mind.

If you are looking for peace of mind, let us at The Law Office of Kevin R. Hancock, LLC, help

you create an estate plan and experience that provides exactly that. Schedule a call today and

start checking off your estate planning checklist.

The post Essential Estate Planning Documents Every Colorado Resident Needs appeared first on The Law Office of Kevin Hancock.

Personal Representative vs. Trustee: Know the Difference

• Personal Representative (or Executor in other States): This person is appointed through your will to initiate, manage and oversee your estate in probate, including filing all necessary paperwork, paying debts, and distributing assets.
• Trustee: This person is appointed in your revocable living trust to manage, oversee and distribute assets according to the terms of your trust.

Traits to Look for in an Personal Representative or Trustee

For either position, you should choose someone who is:

• Trustworthy: If you do not inherently trust the person you are choosing as personal representative or Trustee, then you need to choose someone else.
• Responsible: The person you choose should be adept at handling money, legal documents, and deadlines, and they should generally be a responsible adult in their own lives.
• Willing to Learn and/or to seek Help: Most people have never acted as a personal representative or Trustee before, so if the person you choose has never acted as a personal representative or Trustee, then the person you choose must be willing and able to learn how to do the job and/or willing reach out to professionals like an attorney, CPA and/or financial advisor for help.

Should You Choose a Professional or Family Member?

If you have family members or friends who meet the basic traits as set forth above and they can maintain a neutral perspective in managing your estate, then family members or friends are often the best people for the job of personal representative and/or Trustee. However, in some cases, appointing a third party like a trust company, attorney, or CPA may be the best option—especially if:

• Your estate is large or complex
• Family relationships are strained
• You want complete neutrality in how the estate is handled

Always Name Backups

Even if you have a great person who meets all the criteria to be named as a personal representative or Trustee, you should always name at least one alternate, back-up personal representative or Trustee. The reality is the life happens (death, incapacity, change in relationships), and the people you name end up being unable to do the job. That is why having a back-up or two is vitally important in case your first pick is unable to serve.

Closing Thoughts

The person you name as personal representative and/or Trustee will have a significant role in honoring your legacy. You should always take time to talk to them now to make sure they are willing and able to take on that role in case something happens to you. Also, you should revisit your estate plan in Colorado at least every 3 to 5 years to make sure your plan and the people you chose to execute your plan are the still the best for right now.If you want or need help choosing the right fiduciary, The Law Office of Kevin R. Hancock, LLC, guide you through your estate planning options in Colorado.

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